Wow. Kjerstin Erickson has decided to offer some of her future income for cash up front. She is currently seeking investors to invest $600K with her in exchange for 6% of her lifetime earnings.
It’s a very interesting approach. Two others have decided to seek $300K in exchange for 3% of their future earnings. Would you consider doing this? I guess it depends on what you thought you’d do with the $600K. I think I’d tend NOT to do this. Money is relatively cheap these days. If you have a solid business plan, it’s possible that you could find an angel investor to fund your business and let them share a bit more of the risk.
Anyway, I found it pretty darned fascinating:
http://www.inc.com/magazine/20100501/is-this-a-smart-way-to-get-funding.html
Soon we’ll see personal earnings derivatives and future income CDO’s.